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Homogeneity of Farm Labor: A Dual Approach

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  • D'Antoni, Jeremy M.
  • Mishra, Ashok K.
  • Gillespie, Jeffrey M.

Abstract

The assumption of homogeneity between family and hired farm labor is common in farm labor research. Controlling for region and farm size, this study employs a seemingly unrelated regression analysis to jointly estimate a translog cost function and factor cost shares to determine the elasticity of substitution between hired and family farm labor. The results show an evidence of heterogeneity of farm labor in both cash grain and hog farms in the U.S. There is further evidence that the elasticity of substitution is unitary and the cost minimizing ratio of hired and family labor is not independent of time. Regional factors were found to have little effect on the substitutability of farm labor, whereas farm size was found to have a significant influence on the relationship between hired and family labor.

Suggested Citation

  • D'Antoni, Jeremy M. & Mishra, Ashok K. & Gillespie, Jeffrey M., 2011. "Homogeneity of Farm Labor: A Dual Approach," 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas 98754, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea11:98754
    DOI: 10.22004/ag.econ.98754
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    Cited by:

    1. Kloss, Mathias & Petrick, Martin, 2014. "The productivity of family and hired labour in EU arable farming," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183041, European Association of Agricultural Economists.
    2. repec:zbw:iamodp:274820 is not listed on IDEAS
    3. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.
    4. D'Antoni, Jeremy M. & Mishra, Ashok K. & Powell, Rebekah R. & Martin, Steven W., 2012. "Farmers’ Perception of Precision Technology: The Case of Autosteer Adoption by Cotton Farmers," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119734, Southern Agricultural Economics Association.

    More about this item

    Keywords

    Consumer/Household Economics; Labor and Human Capital; Production Economics;
    All these keywords.

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